TLDR: I want to help fellow “normies” get acquainted with the popular concepts and language of web3 and the metaverse in a way that demystifies it and might even help you become crypto native - this essentially means understanding there is an entire universe outside of cryptocurrency trading and memes. It is a universe that you should explore.
This is an absolute beginner ELI5 (Explain Like I’m 5) guide to web3 without any frills or unnecessarily technical language.
This is a symbiotic relationship - the more I attempt to teach, the more I learn and can share with you. I am open to questions, queries, and call-outs. I just want us to go on this journey together.
The Beginning
My introduction to web3 came through a series of tweets about something called DeFi. At the time, I had no idea what that meant or why it was important. Before that, I had watched the world of blockchain and cryptocurrency from afar, enjoying the news and speculation about Bitcoin, Ethereum and meme coins but never really participating.
So, I spent an entire weekend researching Decentralised Finance and fell into a rabbit hole that led me to blockchain, web3, NFTs, and more importantly a community of smart, fascinating individuals who believe wholeheartedly in the underlying technology.
First things first
When we talk about web3, it implies the existence of a web1 and a web2. These are earlier iterations of the internet.
Web1 is the first major version - Here, we were only able to read information on web pages, unable to comment or interact with them. This was the “Read-only” phase of the internet because people were more concerned about consuming content than creating it. The web pages were static without requiring you to take action like we have today. A popular web1 site is AOL Instant Messenger.
Web2, the internet we currently use is the “Read and Write” version. As people got more comfortable using the internet and innovation exploded, new features were developed. Now, you can interact with websites extensively - leave comments on web posts, connect payment information to websites, take pictures and upload them and even download files.
This is because web2 paved the way for people to create content and share through platforms like Facebook or Google that consolidated the content and made it easily accessible for every person with an internet connection.
However, dissatisfaction with the siloed nature of the internet as we use it today led to conversations around a more decentralized experience.
Many of these conversations happened within fringe and sometimes radical communities on the internet that disapproved of the centralized nature of institutions (economics, politics, corporate culture).
Naturally, this included the internet which is now majorly controlled by conglomerates. So, they aim to disrupt it.
The premise of web3 is pretty simple - the internet should be decentralized.
It should be built and maintained by the users regardless of where they are to prevent it from having a single point of failure. The internet should also be open-source, anyone with the skills can have access to existing code templates and use them to build new applications.
Also, people should have complete ownership of their data and how it is used on the internet.
Simply put, the average person should make the ultimate decision concerning when and how their data is used without the need for coercion from companies.
For example, I should be able to decide if I want any data collected from the multiple apps on my phone to be used or sold. No company should be able to make that decision on my behalf.
Let’s look at decentralization for a bit.
In the context of the internet, this means that it is controlled by everyone therefore it is controlled by no one.
This means no censorship and no company crawling through your data - at least ideally. More eloquently put by Chris Dixon, “web 3 is an internet owned by users and builders and orchestrated by tokens”. (Tokens will be extensively covered as we progress).
Why does this matter so much? Why have I harped on decentralization? If you’re reading this, you are at least web2 native which means you are exposed to the internet through a selection of companies who are able to analyze your internet footprint to sell you products and services, many times against your wish.
The decentralized internet does not need permission from other companies for you to use! It is trustless, permissionless, and all on the blockchain (which we will discuss later). This is a basic definition of what web3 is - a self-organizing peer-to-peer network that does not rely on trust between parties or permissions from any entity.
However, it is important to note that decentralization as a concept is not required for all use cases. It does not fit into every box and frankly, not everything needs to be decentralized and that’s okay.
Nitty-Gritty
I won’t pretend like web3 is perfect or well-formed. It is new and there is still a world of possibility and uncertainty surrounding what it can do. We’re still early! However, there are a few factors that web3 operates on that are worth paying attention to. It claims it is trustless, permissionless, and open.
Open: The source material e.g. code for building applications or protocols is readily available to any developers to use.
Trustless: Users do not need to know or trust anybody in order to use the internet or process transactions.
Permissionless: This means decisions can be made without having to ask any governing bodies how and when to make them.
These features ensure web3 is user-centric. Through the use of tools like wallets that connect us to the blockchain ( the foundation that makes web3 possible), we are able to carry out experiments that reveal the range and limitations of this new internet.
Let’s Summarize!
Well done for making it this far! Here is a little breakdown of what we have covered:
- web3 is bigger than cryptocurrency! It is an expansive ecosystem built on the blockchain that encompasses crypto, communities (DAOs), applications and so much more.
- Decentralization is important. Peer-to-peer networks where open-source development is encouraged and users have full control over their data and content.
- web3 is Open, Trustless and Permissionless.
Ultimately, there is room for growth as the space is still developing albeit at a very rapid pace. There are many moving parts and you can pick one and jump deep into the rabbit hole to find out as much as you can.
In subsequent posts, I will be expanding on these moving parts as broadly as possible. I am interested in hearing your opinions and comments!
Really good read. Thanks for sharing!
very easy to digest. looking forward to everything to come. well done!